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Case in point,2010 Pontiac Vibe,MSRP of 23615,$3500 customer loyalty,$500 credit union enrolle and an additional $1000 off the top,plus because I bought a car from them two months ago,I can use all my GM card rebates $2300.so thats $6200 off.As a side they are getting my 20 year old truck(cash for clunkers),which I'll get $3500 for,Thanks Barry!!! My point is GM has to be selling this auto charitably at break even,but more likely at a steep haircut.And because I've bought two new cars so close together,I won't need one (or two) for another six to ten years.How can this company be considered a going concern with that business model?
My guess is they're trying to move product, that will soon be obsolete, off the lots as quickly as possible. Turn it into cash flow, instead of something destined to the recycling yard, and a slow boat to china.
The example you cite, is likely one of the most extreme. The Vibe, probably one of the slowest sellers, in a slow selling, lame duck, soon to be defunct division. Have to wonder what re sale value on one of those would be in about six years..............
Price a G8, or a Solstice, if there's any of either left, I'd bet the incentives arent quite as attractive.
My guess is they're trying to move product, that will soon be obsolete, off the lots as quickly as possible. Turn it into cash flow, instead of something destined to the recycling yard, and a slow boat to china.
The example you cite, is likely one of the most extreme. The Vibe, probably one of the slowest sellers, in a slow selling, lame duck, soon to be defunct division. Have to wonder what re sale value on one of those would be in about six years..............
Price a G8, or a Solstice, if there's any of either left, I'd bet the incentives arent quite as attractive.
Whether the Vibe is a slow seller or not,it is essentially a Toyota Matrix and has the highest rating for dependability of ANY american car.When I let it be known in my 'hood that we were buying another Vibe (we have an original '03),and not trading in our current one,I found myself in the embarrasing position of having three neighbors ask what I wanted for it,as they have College age drivers who need reliable transportation.That GM didn't do more with this great platform only reinforces my original post.
Whether the Vibe is a slow seller or not,it is essentially a Toyota Matrix and has the highest rating for dependability of ANY american car.When I let it be known in my 'hood that we were buying another Vibe (we have an original '03),and not trading in our current one,I found myself in the embarrasing position of having three neighbors ask what I wanted for it,as they have College age drivers who need reliable transportation.That GM didn't do more with this great platform only reinforces my original post.
You're right.
One of my sons almost bought a Matrix. Well... That is, until I spent some serious time looking it over and started to see all kinds of things terribly wrong with it. Just weird stuff. Turns out it had a salvage title, and some low-end DIYer had "fixed" it.
i Think that with sales of both GM and chjrysler dtill dropping they need to get alot of vehicles stored off the storage lotas. I saw several fro the sir o a news programs and could believe those vehilces sitting on those lots. Only Ford seem to have increased sales in teh last moths over same period last year.
...
How can this company be considered a going concern with that business model?
GM is now a large government supported non-profit operated for the benefit of unions. We will never see our money back and the company will probably fold within five years.
GM is now a large government supported non-profit operated for the benefit of unions. We will never see our money back and the company will probably fold within five years.
Such predictions have been made for decades... yet the GM train keeps rolling.
The remarkable thing is that, once you account for the economic cycles, the trend for GM is exceptionally steady -- an exceptionally steady trend downward. There were still bad times thirty years ago -- but they weren't bad enough to threaten GM's survival, and conversely, the good times were much better. These are GeneralMotors' operating margins by decade:
Average Annual Operating Margin, GeneralMotors 1960s: 8.7% 1970s: 5.5% 1980s: 3.0% 1990s: 1.3%* 2000s: -0.5%
* Excludes one-time $20 billion accounting charge for retiree health benefits in 1992.
$50 billion in loans saves that sinking dinghy for the time being.
Thanks for coming, have a nice day.
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